Domain names are often seen in analogy to real estate in that domain names are foundations on which a website can be built, and the highest quality domain names, like sought-after real estate, tend to carry significant value, usually due to their online brand-building potential, use in advertising, search engine optimization, and many other criteria.
Simple websites are best for low to medium trafficked sites with multiple authors and more frequent content changes, such as marketing websites, content websites or blogs. They provide a simple starting point for website which might grow in the future. While typically low cost, these sites require IT administration of the web server and are not built to be highly available or scalable beyond a few servers.
Many services offer a low "starting price," but require you to prepay for two or three years of service to get that price. After the promotional period, the renewal price for some services can be two, three, or even four times the initial promotional pricing. While the initial deal might be incredible, the cost of transferring your site (or paying the added fee) in a couple of years may be something to consider.